US.:June Flooring Shipments Off, But Still Strong

¡¾2002.07.26¡¿

Manufacturers¡¯ shipments of Oak Strip Flooring fell 6.3 percent in June from the same period last year, according to NOFMA: The Wood Flooring Manufacturers Association. This is the first drop in monthly performance since October 2001, when shipments were off by less than 1 percent.

Year-to-date shipments (through June) are up by a full 10 percent over the first six months for 2001. The total volume of shipments reported for the last 12 consecutive months is 607,806,000 board feet; the total volume for (calendar 12 month) 2001 ended at 579,557,000 board feet.

While the numbers are down for the month, shipments during June 2002 are reported at 58,608,000 board feet, which is the second-highest monthly total since the re-emergence of the Wood Flooring market. That, of course, means June 2001 is the high watermark for Oak Strip Flooring shipments. The total for June 2001 stands at 62,540,000 board feet ¨C well above shipments for any single month since manufacturers reported moving out 65,911,000 board feet in June 1966.

There are some underlying factors that, possibly, contributed to such a high rate of shipments in June last year. Shipments were off in the four consecutive months, and in five of the six months that preceded June 2001. Manufacturers¡¯ inventories grew during this time, enough to supplement production capacity to accommodate a level of shipments that had not been posted by this industry in 35 years. While manufacturers¡¯ inventories were growing, inventories throughout the distribution chain declined. Apparently, it was the latter part of the second quarter when demand grew sufficiently to stimulate a hyperactive rate of purchasing in June 2001 and in the following two months.

Oak Strip Flooring shipments increased without disruption from November 2001 to May 2002. In all but two months, the gains approached or exceeded 20 percent. This rate of growth was made possible, in large part, by new production capacity that had been put into place during the last couple of years. In fact, industry analysts state that the onslaught of new manufacturing facilities and expanded production at many existing operations are responsible for bolstering Oak Flooring supplies while total sales volumes surged. However, reports show that manufacturers¡¯ inventories of Oak Strip flooring have moved progressively lower during these past few months. Now, much of the backlog has been eliminated, and order files are beginning to grow.

Source : NOFMA: The Wood Flooring Manufacturers Association in US.